India’s largest luxury car maker Mercedes-Benz has announced an upward revision of the price of its entire model range effective from March 15. The price increase would be between 3% and 5% depending on the model.
The imposition of an ‘infrastructural cess’ as well as an additional ‘luxury tax’ announced in the Union Budget 2016, has negatively impacted the prices of the Mercedes-Benz model range.
In addition, a weakening currency coupled with rising input costs has been exerting significant pressure to the bottom-line, said the company. The combination of all these factors led Mercedes-Benz India to upwardly revise the prices of the entire model range.
“Mercedes-Benz India has been in the forefront of providing luxury automotive experiences to the Indian customers with the latest products and technology, state-of-the-art retail infrastructure, significant investment in the production facility and offering unparalleled service and ownership experiences,” said Roland Folger, managing director and CEO, Mercedes-Benz India. “However, contrary to our expectation of some relief in terms of rationalisation of duties, the introduction of additional duties and taxes in this year’s Union Budget has adversely affected our pricing.”
The steady rise of input costs against the backdrop of a weakening Indian currency has further eroded its bottom-line, he said. “We were hence left with no option but to make some necessary price adjustments to our product range, in order to protect our investments to provide an unparalleled brand experience to our customers.”
According to Folger, Mercedes-Benz India is on a positive growth curve and has a clear focus on maintaining a sustainable business in this dynamic market. “We also want to maintain our premium brand positioning in the market and sustain the strong foundation which we have created with the trust of Indian customers for the brand Mercedes-Benz for over two decades now.”
Despite this price revision, its innovative and tailor-made financial offerings like STAR Agility, STAR Finance, STAR Lease and Corporate STAR Lease are specially designed for its customers.